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Question 2 Consider the following information about two securities. Standard deviation Beta Security A 40% 0.50 Security B 20% 1.50 Which has greater total risk?

Question 2

Consider the following information about two securities.

	Standard deviation	Beta
Security A	40%	0.50
Security B	20%	1.50

Which has greater total risk?
Which has greater systematic risk?
Which has greater unsystematic risk?
Which has a higher risk premium?

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